Hackers Spent $250K to Crack Tangem Wallet — They Failed | 20 Hours to $200K ★

we have to divide between uh hacks let me say on on on platforms or directly on wallets or on the technology and hacks on defy applications I mean nine out of or 9.9 out of 10 cases when it comes to the wonderful world of DeFi [sighs and gasps] people it's people's fault that they get hacked you know because they were going to put their seat phrase to some other yeah trusted entities uh they're going to sign a malicious contract contract. They had a wallet drain. They act careless with their datas, you know. Um I don't know we ever spoke about that, but I use 10 tangent wallets. Nine with funds on it and one as a burner wallet. So every time we're going to do something when it comes to DeFi applications, just use some uh options to to claim some airdrops, use my voting rights, um I don't know, um connect with wallet connect somewhere. I really don't know. I I I did it the first time. I put some assets for staking. I just transfer the assets I need from my huddle wallets to my burner wallet where just only some dollars worth in uh gas fees on >> and then interact with a smart contract. So, and this is something very crucial. I mean, just imagine you have all your savings, every money you earn, not in your bank account, in your physical wallet. Yeah. In in in paper. Yeah. or on coins and put it into your into your pocket and just go midnight uh New York Central Park. If you get robbed, it's stupid. And this is the same if you have your huddle wallet with all your XRP, your Bitcoin, your Ethereum on it and just use a DeFi application. I mean, you can get a wallet drain within seconds and there's nothing you can do anymore, >> right? >> So, this is one topic we we really highly recommend. Just use burner wallets. It could be a MetaMask, it could be Exodus wallet, it could be anything. Uh but we definitely need to make sure that it's not the wallet where you have all your savings on. So um we we as Tandem we also integrated a new feature a couple of month ago that checks smart contracts before you sign it and translate it to a real readable code. Yeah, we will come to that a little bit later. Uh so we definitely need to help our clients to not get robbed. [laughter] So yeah, that's very crucial for us [snorts] >> and um let's come to the other side. I mean we couldn't do anything when it comes to wallet hacks or let me say um exchange hacks, you know. So for sure we highly recommend just get your assets out of the exchange through your hardware wallet. But let's let's say at the cold card case what is pretty pretty pretty sad. That was also an issue created by humans and I totally hate that you know because if they had put their code completely open source I mean you could download it you can get it if you apply for it and say hey can I have it because I want to work with it um but if it is open source like it have to be like tandem is uh the community can take a look into it they can check it and I mean we also have a back bounty program we also have a white hat hacker program where we >> um pay the community, we pay white hat hackers to check our code and we really do this because we know I mean you can you can check as much as you want but in the end you're human and if you put a second pair of eyes to it it's good but if you put 500 other pairs of eyes on the code it is just the best. So um let me end that a little bit with the difference what what what separates Tandem from every other hardware wallet. >> Okay. >> Um so I mean everybody knows if you create your Tandem your hardware wallet your Tangum wallet the very first time and sign it up set it up you have two options. You can create your wallet. So it starts with a seatless version. So what happens is the microprocessor on the card directly uh creates the private key without the private key is leaving um from the card to the phone. So there is never ever anything in the readable performat that all is created in the very highest anthropy by the processor by its own. So there is nothing that I mean what could hack that right now you know. So um so we have a 256 65 56 uh bit encryption with that. So what's again what I said the highest entropy level what we can get. Um but if you choose and say hey you know what I would love to have my seat phrases because I was told so during the last 17 years and I need that because I want to write it down or feel better about it. Hey it's good. You can do that. And there are two additional ways. You can put in your own seat phrase at best with 24 words plus the passphrase. So an additional layer uh what creates I would say the much highest entrothy in the world. So therefore make sure um that you definitely put your passphrase in it. Uh it doesn't matter how long it is. So I mean this is nothing that someone can re-engineer even when it comes to quantum quantum computer hacks or let me say re-engineering, >> right? Um, or you can let the Tandem app create your seat phrase. So, and that is sometimes a little bit odd when when I talk to people because they say, "Okay, you really want your phone to create your seat phrase and know it?" Yes. So, here are two facts. The Tandem app is a complete island. It doesn't ask for anything in your phone. It doesn't want to give anything out there. So, and this is something very special. I mean I can go much deeper into that into the rabbit hole but we had made a lot of articles because especially for that um and when it comes to creating the seat phrase highly recommend definitely 24 seat phrase it doesn't come from a pre-fabricated list what is pretty interesting um the app is uses the um noise from the processor in your smartphone >> to create the highest level of empathy. I hope I spell it correctly. You guys know what I mean. You guys may recognize that I'm German. I'm not native to speaker. Sorry for that. Uh so um we we we definitely use that as one of the parts to create the highest entropy in the in in in in that process um to create also the uh 265 bit encryption uh to get again the highest entropy. So therefore nothing can happen there either. Again, it is it is all um broken down to the user. If you write down your seat phrase in a in a spot where somebody can find it. Um if you may only use 12 words, it's still safe. Don't worry, it's the highest level as well. But 24 words plus phrases all the time the very best. This is something we highly recommend. Uh so yeah, >> that is a good one. And you know, it's one of those things where I mean a past phrase is great. The 25th word is whatever you guys want to make it. And you can do past phrases. You can use the pneummonic phrase. You can generate those 24 words. But I gotta be honest with you and everybody here. I don't use those for tangent. I actually what I do is as it sets up, I don't actually record anything. I don't write down anything. I move around a lot. I'm always paranoid. And so far, what has worked for me really well, even with the new cards that we just set up for the animal shelter, which was you're just going to essentially what we saw in this little uh name that first of all, shout out to Big Pay for the 5K. I appreciate you, buddy. But when we're doing this and we're and we're scanning these cards, it just makes things so easier and everything is within the card. And then people would say, "But Rob, what happens when someone steals your phone? You're screwed." No, no, no. doesn't work like that. First of all, if my phone gets taken, which it has in the past and first of all, they need a physical card. So, okay, let's say like this. Well, Rob, you're not that smart. Which is true. You're not that smart and you kept your your tangent card with your phone and now they're going to have access. No, they still won't have access because once they tap that card, they need a pin code to to get through. And they say, "Well, okay. Well, how the heck is this? What if I what if I lose the pin code? I forget." Well, great news. you have to have two cards and if you have two cards you can reset your pin code and everything works out pretty well. So for me and like you know we just kind of you know went down that little rabbit hole but David talked about you know to connecting your Tangum wallet to say a DEX or some other type of wallet. There are different types of wallets out there. I treat Tang like the essentially Fort Knox set it is but other people will buy two sets of Tang and one set is what they use to pay for things and they just scan things and go and off it goes and that's what Tandem actually has. You can actually pay for things and the other part is the Fort Knox part. So again, I wouldn't keep my entire life savings uh into crypto and then be walking around with it. I would actually have two different types of cards. So David, uh, you know, if you could expand on that. What did I miss? >> Oh, you don't I don't think you miss something. I think you perfectly explained it very well. So I mean, I'm I'm all the time 100% stunned when I explore new things with Tang. So I don't know if I ever told that. Uh, if I did so, please correct me. Um, I came to a point where I told my wife, "Honey, what what happened if I die tomorrow?" And she said, "Yeah, we'll all be sad, but we probably don't get to the crypto." I said, "Yeah, you're right. So, you know what? Let me sign up to my let me sign up your face ID to my phone." I mean, I still don't know if that was still a good idea that my wife can check on my phone right now. I mean, I got theoretically nothing to hide, but So, um, and I started with her. I say, "What? You know, you know what? Look, look for the Tandem app and open it. I have my biometrics all the time online with my iPhone." And, uh, she opened the Tandem app and I want to scan your face. Typically, when I scan my face, perfectly fine. He's opening up my my my wallet. So like you can see it maybe here. So let me let me So when I when when I open my phone um I going to go to my Tangent app and I open it up and everything opens up. So this is by the way my burner wallet. You can see I only got a couple of bucks on it and if I scroll to the next one. So I mean this is only one phone. I I have two phones. This is my regular wallets with you assets of my kills on it. You know it's just just just some of my tangent wallets. Anyway, so if I gonna switch um once once I added her face, it won't let open the Tandem app without Tandem notifying, hey, there is a new face, a new ID uh put to your phone. Please scan every single card what you got on the phone plus put in the PIN because then we still know you're the owner. >> And that was something I said, "Okay, guys, you really did it to the next level." So even if someone steals your phone, social engineer it in that way that he can open it up, put a new face to it, tangent knows, hey, please be careful. And this is something that totally stuns me. Um, and I I I think I think you can start a tandem, you know. I mean, you know all this stuff and explain it perfectly fine. It doesn't matter if you lose the phone, doesn't matter if you lose one card, it doesn't matter if you lose one card and the phone together. They will never ever get access to it. And even if they can break in, they will recognize it and they ask for the PIN. So, and if the PIN is at least eight digit uh long, there is no way uh you can brute force this. So, there's also another topic. Um if you put in the um if you try to brute force the PIN what you set up during the setup process with your with your wallet uh after the fourth wrong interaction, it increases the time between uh entering in the PIN. So at least you're going to come in to I don't know 5 minutes or 10 minutes or half an hour. So there there is no way you can brute force it. >> That's a good I never thought of that because like we hear about brute force and they can just go and go and go and go and especially with AI and quantum computing that is true. But if you can do that where you you force a shutdown of an expansion of time between brute force attempts I think that would be that's pretty great. And then of course screw up. >> Yeah. Hey, let me let me add something to that. Um, we had a we have a really really good competitor. Uh, well, I mean, you you named the name already. I don't want to talk about bad about them. They came from France. >> Yeah, sure. >> And, um, they they really invested a lot of time and effort and money, really a lot of money to try to hack the Tandem wallet. And they started back last year uh with even that brute force attack where they just uh opened up a card and um tried to manipulate the processor with giving power to it and release it at the right time to shut down the brute force attack time. So they made it but the interesting fact what they never told is the internal memory of our microprocessor is let me say programmed as a yeah as a control door. If you overpower it what pretty quick happens after the third or fourth time if you give power to it and back in a really not precise way it totally roasts the processor and nothing ever can happen. So I mean they never told that they extracted assets because they never could they never did uh but they made a proof of concept what what's worth I mean they also have had two month ago I think another case where they tried to do with the laser injection procedure uh just erroring the processor at the right time with $250,000 worth of equipment and I think at least seven cards they totally opened up and messed up until they came to a point where they could manipulate one. I mean, long story short, >> they invested a lot of time to help us to make our product better. And I mean, if if you need a laboratory with skilled employees, what cost at least, I don't know, half million every year plus equipment worth of quarter million of a year. I mean, what [laughter and snorts] are we talking about? You know, it's good. We learned from it. Thank you for that. Uh, but I mean, there is no real danger. >> Yeah, exactly. I um I I saw those reports and I saw the posts and I was like and actually someone had had printed this up in a live stream and I said like I said, "Let me take a look real quick." And I I took a look and I scanned it. I go, "You're telling me that I'm going to have to have the physical cards, all of them, and I'm going to have to have $250,000 worth of equipment to actually break into there, and I need to know what I'm doing, and I need to have access to all those things." It could happen. it I mean I mean it could happen but uh I don't see it happening anytime soon but hey this is why we talk about diversification right we diversify our portfolio we diversify a little bit of our storage capacity and we spread things around and it's all about I hate to say this but it's all about being paranoid a little bit only the paranoid will survive so if you're out there and you've got a big chunk of it I would say why not move things around a little bit. And there'll be a link in the description. You can get a you can get a discount for for Tangent. But again, it's what I use. It's what I use for my personal crypto. It's what we're using today for this uh charity event. So, hopefully that'll spread some shed some light on on things that are going on. So, David, well said. I appreciate it. And make sure that you're definitely going to use Rob's code plus uh Boom MX Boom X26 plus additional 10% plus free ship and you get free shipping no matter what wallet you're going to use. I mean you have three codes what is absolutely phenomenal and you get a I think you get a tandem wallet three card set. I highly recommend the three card set for $55 plus taxes and that's all. uh plus a $10 Bitcoin bonus. Even if Bitcoin is uh making 5x, you have paid off the wallet by your own. And I mean long term, we don't talk about pricing at Bitcoin, but we know where the journey ends, is it? >> That's it. You know what? Let me uh now that you I did not know about those codes until you >> This is fantastic. Okay, let's >> Well, come with me, David. Come with me as as we go into the back end of the description and we put this stuff in. So, >> let me put this in. There's all my stuff. What was that code? No shipping. Free shipping. >> Give me Yeah, give me give me just a second. You know what? Let me let me let me send that over to you. >> Um, and I'm going to give you >> I'm going to put that in the uh >> Yeah, I'm going to do that. This is This is what you have to add behind Dan. >> Ship. Oh, ship zero. >> Yeah, ship zero. I don't know why they make it that hard, but it is what it is. >> It is what it is. Does it look like this? Can you see that? >> Yeah. Know, you you can you can put it behind behind uh equals Dan and then end promo code. So, this is so this is then one link, you know. >> Oh, I see. I see. So, right here where it says promo code >> behind there. Correct. And then the promo code equals Dan. Do I have to put another equals ship zero? >> No, no, no. You can No, you can you can just use that what I sent you and just pass it in there. >> Oh, D. >> Correct. No, no, hold on. >> Promo code Dan and then Correct. Perfect. Now it's right. And you can you can uh you can choose it. You can you can change it. Uh 20% off plus free shipping plus $10 in Bitcoin. [laughter] >> So there's a lot you can add there. >> That's sweet. Plus $10 in Bitcoin. Hold on. plus sir >> $10 in >> make sure whoever whoever orders it um you get a couple of days after you received your wallet an email that typically runs into your spam folder with a QR code and then you can activate it uh with every Tangum wallet but make sure you activate it very quick but because you only have a 30-day time window if you want to you can you can select your whole promo code and just add it put it into uh into uh a new um bar. So then you can see all the um >> great >> discounts. >> Okay. I think is this. So we got it. Do I have it? >> Yeah. Great. >> All right. Hey, let's do one more thing, Dave, while you're here because I want to show people just how how easy it is. How about Are you able to send any kind of crypto anywhere? >> Yeah. >> Great. Let's >> What do you like? I mean, I we're in Europe here. Uh, the European Union don't like USDT, but uh, >> I'll take whatever you got. I >> What do you think? BNB. Give me Give me a B&B address. >> BMBB Smart Chain. Gotcha. >> I want you to I want to show people how easy this can be. I'm going to put this into the private chat, >> right, Zah? >> Yeah. Give me just a second. I'm going to copy that over, send it to my smartphone. Uh >> I mean can you can can you also uh look up look up an QR code and I can scan it. >> Oh yeah. Let's see here. Hold on real quick. >> Yeah, you got it. I mean it's may maybe maybe better to display. >> Watch this. I've got you, man. I got you. >> I know. [gasps] >> Because people say what I mean QR codes make things a heck of a lot easier. >> It is. >> I'll tell you that. >> Let's see. add funds. >> So, I got to switch back in the meantime to my BNB assets. [sighs] >> Oops. >> I think that's a great idea to make sure that we really um display a use case. You know, everything else is >> Yeah, exactly. >> Perfect. Okay. So, I'm going to press transfer. I'm going to say send. Then I'm going to choose the amount. I said 04. It's roughly $250 85. Uh, >> all right. >> Over. I said next. And I'm going to say scan. Oh, can you can you display in the the QR code again? Okay. So, let me scan it. He got it. So, let let me check it. I going to check all the time the very first digits. 8 DFC something in the middle. [laughter] >> Something in the middle. >> Yeah. No, no, it's I mean that's the way. Um 9F. Okay, perfect. Looks good. So, I going to say next. I'm going to check it again. Network fee is below 1 cent. I mean, just imagine four years ago. Is that crazy? Even with Ethereum, isn't it? >> Yeah. Not happen. >> I gonna I'm gonna have my face scan. And now I'm going to tap my tangent card behind. So this is by the way one of the old versions what was seatless only. Uh these are the new versions with seat phrases. >> And he send it over. >> We say close >> and let's wait. It should be with you in really seconds >> and it'll it'll probably update. The thing is with this one, I used uh I used Claude to uh to go into the different scanners, Bitcoin, Ethereum, BNB, and update every two to three minutes. So, it'll come in, but a lot of time I mean it is it is there within 10 to 20 seconds latest. Not >> Yeah, exactly. And that's the beauty of digital assets and crypto and going We just did that. I mean, try doing that with your bank account. >> Yeah. Anyh who, all right. So, David, that'll lead us into the last question, which is what are the what are you guys working on in the background because you guys are always doing something. Is there anything new coming out? And if and don't worry, there's only a couple thousand people watching. So, they won't tell anybody. It'll just be between me, you, and 2,46 people. Yeah. >> Yeah. That's that's good. So, we're we're family, isn't it? Um [laughter] Yeah. So let let me maybe go back a little bit what we have done because I think that's absolutely important. Um specifically for United States um I think you have recognized that we have brought up Tangent Pay. >> What's what's our Tangum debit card? Um we integrated Visa directly into the Tang user interface >> and made sure that you can have a lot of fun. So what we have done right now or let me say recently is you can have more tangent uh cards more tangent paid cards than only one. So you can apply for a second a third. What you can also do you can apply for a physical card. We also brought up benefits like uh airport launches cash back etc. So check out our website and this is this is amazing. I mean we really become more like a seamless solution when it but when it comes to money and this is something we're really proud on it honestly. So and what we also made what is very very interesting >> um we have new accounts so account numbers for HCH AC and wire uh fed wire deposits for for for qualified users. So you get your own bank account with Tanger. Hold on. Hold on. [snorts] Wait, wait, wait. You got to It doesn't In my mind, I'm thinking to myself, so you get a bank account. And I'm going to guess this is not in America. I'm just going to take a stab at that. >> No, it is. It It It is life only for America. That's funny. I mean, we're really looking forward to get that in Europe, but but the guys here are driving us totally crazy with all the Mika stuff and try to regulate everything to the bottom. So, >> horrible. Yeah, it's horrible. >> I got you. Wow. That's a total reversal. That's so you can get a bank account a guess you have to do KYC and AML where you submit maybe your your information your photos and okay >> but what's but what's very important to understand >> yes if you apply for tangent pay you're going to do that in the app because Visa we're sharing part of our app with Visa to use the interface >> but what not happens if you're going to do the KYC for the Visa tangent pay card The KYC process does not get linked with your hardware wallet. Your hardware wallet stays hardware wallet anominum without any information checkled to you. Your datas, your informations, uh your money or whatever, it doesn't matter. Yeah, it's still a hardware wallet, but nobody knows who owns it. And your Visa Pay card is your Visa Pay card. So, that's very important. I want to highlight that because I know sometimes people drive it crazy say, "Oh, no, everybody knows right now who I am with my wallet." No, it's not the case. >> Separate. separate separate walled gardens. >> Great. >> I like it. David, here's the the other thing is before I forget is staking. >> We went round around me and Nikita went round and round around about this. I'm like, "Hey, we need more staking. We're taking what do you guys offer as far as staking in your cold storage wallets right now today. And what are you working on in the future?" >> So, we have live right now Solana, Cardano, Tron, Cosmos, so atom and polygon. So, oldmatic that is what we have. Um, we are working on several other options. We know that XRP is definitely needed. We know that something for Ethereum is highly needed. We know that something natively for Bitcoin is highly needed. But here's the point. [gasps] We as Tangum have absolutely the highest responsibility to select the right partners for the right job uh with the highest level of trust. If we don't do that, we're definitely going to have an issue with uh trust and we don't want that. So therefore, yes, it takes longer to implement new partners, but again, this is your money and if something goes wrong, it's not the staking provider, it's tangent what everybody will blame. So therefore, we really separate and check everything very detail. Something I need to highlight what's even with staking another highly highly great feature is our smart gas function. I don't know if you recognize that. No, >> we have implemented for different networks like Ether, BNB and MATIC that you don't need anymore the layer one for gas fees. So let's imagine you want to send USDT on Ether network. You can just send it without having ether as gas fee. >> What? >> So it takes the gas free from your USDT. Yeah. Polygon arco. So this is I mean this is this is just imagine. Yeah Rob just imagine four years ago, eight years ago we have to have $150 worth in Ether to send $500 in USDT. [snorts] >> So first of all right now the gas fee is less but I mean how many times you stopped sending assets >> because you missing the layer one asset or you did not have had enough there to pay the gas fee. Yeah. So I mean this is a small thing and the new users is ca that came into the market right now and use tandem I mean just don't recognize it but for everyone who is here for at least four years know what a pain that was isn't it >> interesting that is interesting >> yeah we're very proud on that honestly uh we also made it totally rework of our interface we made everything very clear very smooth and we also have news in we have token informations in we have um all the details for tokconomics inside there. So theoretically, you don't need to leave your tangent app to get all the informations to be updated. >> David, how many times you guys been hacked? >> Zero. >> Okay, just making sure. >> Except except the two times from the French guys. They tried it. But but again, that was a proof of concept. I I definitely said >> I'm totally with you guys. Please take a wallet with 50 bucks on it and extract it. >> See what happens. That's it. Well said. Hey, and David, I have been taking so much your time. I appreciate it. I we'll we'll wrap it up and unless there's some some big thing you wanted to disclose that's going on, you can do that right now. Again, it's only us, but but think about that. But the last question is is a very simple one. Do you have any any any dogs? Any pets? Dogs, cats, parakeetses, anything like that? >> Unfortunately, not anymore. We have buried our uh 15-year-old Jack Russell uh lady uh what really grow up with my four daughters and uh we have buried her unfortunately three four months ago. It was it broke our heart honestly. Uh but my wife No, my my oldest daughter got a four-year-old jumping horse race jumping horse blood. So we have 600 kilo of raw meat sitting there. So yes, we have [laughter] we have a pet horse. Yeah, >> David, I I I feel your pain. I had two dogs and they lived to uh one was 13 and one was 14 and they and they essentially grow with you through a cycle and it is uh is difficult when you lose them. So, I understand your pain. I'm glad your daughter got jumping horse. That is that is great and uh I just wanted to to see that and uh sorry for your loss. I will say though that uh everybody if you don't have a dog, they're the greatest things of all time. They never re they never rugpull. They never sell you some crazy meme coin. They don't go back in business deals. They're very nice. They're very fantastic. And I will say that uh as we're going through this and you know David donated $2, but I'm sure there's other stuff later on. But uh as a reminder, you know, if you guys want to donate again, we always get around 10 to 20k uh views per per video. We're looking at a goal of 200k. If you guys can pitch in 20 40 bucks, we're able to actually move into our new location as we lost the lease for our current location. And we'll be we'll be moving 50 to 70 dogs. And this is what we need for all of the donations, which is the setup, canisters, water, engineering, uh the crew, and of course, uh some type of solar panels so we can have electricity 247. And that is what is going on. So, David, again, thank you for for stopping by. We appreciate it, especially all those new updates. Some things I had no idea that you guys are doing that. I need to need to keep myself up to date. >> We're working on so many other things. Unfortunately, I couldn't tell all of that stuff. If I do, so they're going to spank my butt. I don't want to risk that with them. Uh I can tell you stay tuned. Uh it's very important. Um, and make sure whenever you guys come to any social media channels like Telegram, Discord or even YouTube comments, make sure you don't trust any people. There is no one who will ask you for any informations or said you need to transfer assets or please sign that contract or please log in there or give me your informations. If somebody tried to bring you in hurry, stop, think about it, ask and that's all I can tell you. And Rob, if I would have known that I thought that was really just a test transaction to show how quick it was, I would have donated more. But let me do that a little bit later. I can also offer you uh five tandem wallets. Uh what you can give to I don't know the the highest donations um or or or the next donations above a certain amount. You you're going to choose that. Uh we take we take five wallets. You give us the addresses and I make sure they're going to get it no matter where in the world. That is something we're more than happy to uh do as our part as Tandem. >> You're the best. David, you guys are the best. I love it. What I'm going to do is every session moving forward, we're going to give away one tandem wallet and we got five sessions easily coming up and that'll lead me to this last one. Who do we got coming up now? Let me refresh this. Ready Hipper in 20 minutes. So, let me get everything together. We're going to give We're going to do this giveaway. I need to do a Google forum. I know how to I'll set this up and we'll get out of here. David, thank you so much for your time. We appreciate it. >> Thank you very much for having us. Have a good one.